Client Management Software

How Profitable Is A Client Management Software? (Updated for 2024)

Pat Walls

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Updated: October 7th, 2024

How Profitable Is A Client Management Software? (Updated for 2024)

So you want to start a client management software?

And the first question that came to your mind was, “well, are client management softwares actually profitable?”

With a market size of $23.3B - there’s plenty of business to go around.

Especially considering:

You could start a client management software with as low as $149
Based on our data, client management softwares generate an average of $2.99M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a client management software.

Let’s dive in!

Is a client management software profitable?

Yes, a client management software is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $2.99M per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your client management software.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your client management software is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a client management software worth it?

If you’re wondering if a client management software is worth it, the answer is a big YES. With client management softwares, you have the potential to earn $2.99M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $23.3B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a client management software to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful client management softwares case studies.

Examples Of Profitable Client Management Softwares

Here are a few examples of profitable client management softwares, and a few more details about them:

1. Join It ($480K/year)

Mitch Colleran bootstrapped Join It, a SaaS platform that helps organizations sell and track memberships, after leaving his role at Eventbrite. He spent three months in Spain, teaching himself to code and building the initial product. Since launching, Join It has gained 700 paying organizations and is still focused on refining its business model and market fit.

Is it profitable? Yes
How much money it makes: $480K/year

How I Quit My Job And Launched A SaaS Company From Spain

Join It, a bootstrapped SaaS platform that helps organizations sell and track memberships, has been making $20,000 per month and is attracting customers through Google Ads, Organic Search, and Word of Mouth, despite being turned down multiple times by incumbent membership platforms.

Read this case study

Read by 33,861 founders

2. Resource Guru ($2.12M/year)

Andrew Rogoff, one of the founders of Resource Guru, came up with the idea for their online team calendar while working in marketing agencies and experiencing the frustrations of resource scheduling. They realized there was a need for a better solution than using ugly spreadsheets, and decided to create Resource Guru to help teams manage their time efficiently. Today, Resource Guru is used by around 20,000 people in 88 countries, including high-profile customers such as Apple, NASA, and Uber.

Is it profitable? Yes
How much money it makes: $2.12M/year

How We Built A Resource Scheduling App to $2.1M ARR

Resource Guru is an online team calendar software, used by around 20,000 people in 88 countries around the world to help them manage their team's time, and has a current ARR of $2.1m.

Read this case study

Read by 11,609 founders

3. Citationsy ($6K/year)

Cenk Özbakır founded Citationsy in 2017 after the online citation generator he had been using, RefMe, was shut down. With over 200,000 users as of February 2020, Citationsy has grown through word-of-mouth and SEO, offering users a simple, fast, and privacy-focused way to create bibliographies and references.

Is it profitable? Yes
How much money it makes: $6K/year

How I Developed A $500/Month App To Create Citations And Bibliographies

Citationsy is an online referencing generator launched in 2017 that grew from nothing to over 200,000 users as of February 2020, all through word-of-mouth and SEO, and is making a profit every month without spending any money on marketing or Google ads with a customer acquisition cost that is essentially zero.

Read this case study

Read by 5,434 founders

Learn more about starting a client management software:

Where to start?

-> How much does it cost to start a client management software?
-> Pros and cons of a client management software

Need inspiration?

-> Other client management software success stories
-> Marketing ideas for a client management software

Other resources

How much can you make with a client management software?

With a client management software, you can make an average of $2.99M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $149. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a client management software make a week?

Based on our data, average weekly revenue for a client management software ranges around $62.3K. As such, you could see monthly revenues of $249K.

To know if your client management software achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your client management software.

How much do client management softwares owners make?

The income of a client management software owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established client management software is about $62.3K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a client management software owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Client Management Software Profit Margins

Generally speaking, a client management software can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a client management software, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, client management software owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, client management software owners can ensure long-term sustainability and profitability for their business.

Client management software owner salary

The salary of a client management software owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established client management software, in a prime position, might see an average weekly salary around the ballpark of $51.7K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a client management software may be a promising business to start - but the success of your client management software mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable client management software.

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Starting A Client Management Software: Everything You Need To Know

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